Apparel Brands, Suppliers Clash Over Who Bears Trump Tariffs

U.S. apparel companies and overseas suppliers remain deadlocked over who should absorb costs from Trump’s new tariffs, according to The Wall Street Journal. VF Corp., parent of North Face and Dickies, requested a 3.5% cost reduction from suppliers, warning them not to cut worker protections. Similar demands came from REI, Burton, and 5.11 Tactical, though suppliers argue that absorbing the costs would push their already-thin margins into the red. VF CFO Paul Vogel said the company plans to offset the 10% tariffs fully through cost-cutting, price increases, and shifting some sourcing. Most of VF’s U.S.-bound goods come from countries outside China, including Vietnam, Bangladesh, and Cambodia. Industry insiders warn that the prolonged dispute is stalling innovation and threatening long-term supply chain stability.